What is the primary advantage of term insurance for the policyholder?

The primary advantage of term insurance for the policyholder is that a substantial amount of life insurance can be purchased for relatively modest premiums. Term insurance is designed to offer higher coverage amounts at lower costs compared to permanent policies. This affordability makes it accessible for individuals who may need significant life insurance coverage, especially during critical life stages, such as raising children or paying off a mortgage. The lower premiums are a key feature of term insurance, allowing policyholders to obtain extensive coverage without a large financial burden, thereby effectively providing financial protection for beneficiaries in the event of the policyholder's death during the term of the policy.

In contrast, other options describe benefits associated with other types of insurance. Permanent life insurance products provide lifetime coverage, which depends on continuous premium payments, thus making them inherently different from the temporary nature of term insurance. Additionally, while some permanent policies offer level premiums, term insurance typically has lower initial costs, even though premiums may rise if converted to a permanent policy later. Finally, while policy riders can enhance benefits in certain policies, the specific context of using term insurance primarily highlights its affordability and significant coverage potential during the term period.